Oil prices fell in early Asian trading on Monday as worries about a growing global oil surplus weighed on the market.

The International Energy Agency recently increased its forecast for excess supply, suggesting that production may outpace demand in the coming months. This has raised concerns among traders about potential downward pressure on prices.

According to Hamad Hussain, a climate and commodities economist at Capital Economics, global oil stockpiles stored at sea—mostly oil in transit—are nearing levels last seen during the pandemic, when prices were much lower.

He noted that these high stock levels are a clear sign that the market could soon face an oversupply problem.

Meanwhile, reports said U.S. President Donald Trump had a “productive” conversation with Russian President Vladimir Putin, which some analysts believe may influence future cooperation among major oil producers.

As of early Monday, U.S. West Texas Intermediate (WTI) crude slipped 0.3% to $57.35 a barrel, while Brent crude also declined 0.3% to $61.10.

Experts say oil prices may continue to face pressure if global inventories keep rising and demand fails to catch up.